The Federal Government has proposed the Tax Laws (Amendment) Act, 2024, aiming to improve compliance, ensure fairness in taxation, and enhance resource generation for economic development. While the changes may seem complex, they are designed to modernize the tax system and strengthen the value chain.

Key Highlights of the Proposed Bill

1. Input Tax Adjustments
• A data-based risk management system may now control input tax allowances, introducing flexibility in adjustments. Businesses can contest such adjustments within 60 days through the Commissioner.
2. Coercive Measures for Non-Registration
• Non-compliant businesses face severe penalties, including:
• Bank Account Freezes: Non-registered taxpayers’ accounts can be frozen until they register.
• Property Transfer Restrictions: Transactions involving immovable properties exceeding a specified threshold will be barred for non-registered individuals.
• Business Premises Sealing: Authorities can seal premises, seize moveable property, or appoint a receiver to manage taxable activities.
3. High-Value Transactions and Restrictions
• Economic transactions by non-compliant individuals will face restrictions, including:
• Vehicles: Non-registered individuals cannot book, purchase, or register motor vehicles, except for motorbikes, rickshaws, tractors, or pickups below 800cc.
• Immovable Property: Transfers of immovable property exceeding a specified threshold will be restricted unless compliance is met.
4. Enhanced Monitoring
• To bolster compliance, auditors and experts, including third-party professionals, may be appointed for audits, investigations, and valuation activities.
5. Digital Integration
• Service providers in the Islamabad Capital Territory will need to integrate their systems with the FBR’s real-time reporting framework to ensure timely compliance.

How Vintage Can Help

At Vintage Global Consulting, we understand that navigating these changes can feel overwhelming. Here’s where we step in:
• Compliance Assistance: Ensure timely registration to avoid coercive actions like property and account restrictions.
• Tax Planning: Optimize input tax allowances within the updated legal framework.
• Digital Integration: Facilitate seamless integration with FBR’s real-time reporting system for compliance ease.
• Risk Mitigation: Provide strategic advice to avoid penalties and ensure uninterrupted business operations.
• Audit Readiness: Prepare your organization for enhanced scrutiny with accurate documentation and reporting mechanisms.

This proposed bill underscores the government’s commitment to strengthening the tax ecosystem. While the changes may seem challenging, they are an opportunity for businesses to modernize and grow.

Let us help you turn compliance into a competitive advantage. Connect with us for tailored guidance and support. Together, we can embrace change with confidence.